J.P. Morgan Maintains Neutral on FMC Technologies

J.P. Morgan is out with its report today on FMC Technologies FTI, maintaining Neutral. In a note to clients, J.P. Morgan writes, "FMC Technologies is effectively a pure-play in subsea capital equipment, with a particular emphasis on higher-end technology in the larger and more complicated projects. The company generates by far the best returns in the group, employing a 'capital light' model with limited debt, lean working capital, and a greater emphasis on outsourcing parts of the manufacturing chain. Our Neutral rating is solely related to the timing of the subsea capital equipment cycle, which should quickly improve once larger offshore development projects are awarded―potentially a 2H11 event." J.P. Morgan maintains a $46 PT on FTI. At the time of posting, shares of FTI were trading at $45.16, up 1.51% from Friday's close.